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To do that, the lnks need to be set to block display, and they will determine the size of the <li>s. To counteract a problem with IE spacing the <li>s when the <a>s are blocks, the <li>s will need to be floated left and given a 100&#37; width. Instaed of left padding on the <li> making room for the bullet graphic, that can now be done with a left margin on the <a> elements. Try this css :

Attachment not approved yet, but to include the whole area in the hover, move the bullet image to the <a> tag instead, and provide room for it with left padding on the <a> similar to the way it was done on the <li> :

The height and line-height properties go hand in hand here - if the line height is equal to the height, the text will be centred vertically. I used ems in the example as it allows for text resizing. You could use the 30px if you like, but it won't allow quite as much text resizing :